Shares of Concho Resources (NYSE: CXO) got crushed in August, plunging 25.1%, according to data provided by S&P Global Market Intelligence. Fueling the sell-off in the Permian Basin-focused oil producer was its poorly received second-quarter results.
Concho Resources earned an adjusted $139 million, or $0.69 per share, during the second quarter, which missed the consensus estimate by $0.03 per share. Lower oil and natural gas prices were the main issues that weighed on its results.
But the company also disclosed that its 23-well Dominator project -- which tested how closely it could space wells -- underperformed expectations. That disappointing result caused the market to fear that the Permian Basin might be running out of top-tier drilling locations, which could hurt Concho's long-term prospects.
Continue reading
Source: Motley Fool
(September 6, 2019 - 8:07 AM EDT)
News by QuoteMedia
www.quotemedia.com
